The Dow Jones Industrial Average rallied 130 points Monday afternoon as the stock market extended last week’s big gains, sending the key market indexes to new highs.
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The Nasdaq rose 0.5%, the Dow Jones industrials gained 0.4% and the S&P 500 added nearly 0.4% in the stock market today. Small caps tracked by the Russell 2000 soared 2%. Volume was mixed, lower on the NYSE but higher on the Nasdaq vs. the same time Friday.
Stocks rallied last week as Congress fast-tracked President Joe Biden’s $1.9 trillion stimulus relief plan. House Speaker Nancy Pelosi said the bill would be passed by the end of the month. The current stimulus package expires in mid-March.
On Sunday, Treasury Secretary Janet Yellen told CBS the plan could bring the U.S. back to full employment by 2022. “We face a huge economic challenge here and tremendous suffering in the country. We have got to address that,” Yellen said. “That’s the biggest risk.”
The Labor Department on Friday reported U.S. nonfarm payrolls grew 49,000 last month, just below Econoday’s forecast for 50,000. Private payrolls accounted for only 6,000 of those jobs. The unemployment rate fell to 6.3% from 6.7% in December.
However, December’s job losses were revised to a 227,000 decrease.
U.S. Stock Market Today Overview | ||||
|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 31275.19 | +126.95 | +0.41 |
| S&P 500 | (0S&P5) | 3900.40 | +13.57 | +0.35 |
| Nasdaq | (0NDQC ) | 13924.95 | +68.65 | +0.50 |
| Russell 2000 | (IWM) | 225.98 | +4.33 | +1.95 |
| IBD 50 | (FFTY) | 47.43 | +0.82 | +1.76 |
Last Update: 1:20 PM ET 2/8/2021 | ||||
Tech stocks boosted the Nasdaq to a 43.6% gain in 2020 for its fifth best year ever. The S&P 500 rose 16.3% and the Dow added 7.2% last year. Read The Big Picture for detailed daily market analysis.
Covid-19 Update
The Covid-19 pandemic continues to roil the U.S. economy, as nationwide lockdowns approach the one-year mark. But there are signs of hope as vaccinations roll out and the number of cases starts to plateau in some states.
Coronavirus cases worldwide are approaching 106.8 million with over 2.3 million deaths, according to Worldometer. In the U.S., cases have surpassed 27.6 million with nearly 475,000 deaths.
Dow Winners And Losers
Disney (DIS) jumped 4% to clear a 183.50 buy point of a five-week flat base in heavy volume. Shares remain in potential buy range, which goes up to 192.68. Analysts expect the media and theme parks giant to lose 33 cents a share on nearly $15.9 billion in revenue when it reports Thursday after the close.
Among other blue chip winners, Cisco (CSCO), Chevron (CVX) and Goldman Sachs (GS) rose nearly 2% each.
But McDonald’s (MCD), Nike (NKE) and Procter & Gamble (PG) gave up about 1% apiece.
Outside The Dow
Twitter (TWTR) gapped up and rose nearly 2% in heavy trade to a new high. The stock is on track to extend its win streak to six. Shares remain in potential buy range, which tops out at 59.02.
The messaging platform is expected to earn 29 cents a share on revenue of $1.18 billion when it reports Tuesday before the open. That would represent a 16% year-over-year EPS bump on 17% higher sales.
Tesla (TSLA) climbed 1.7% as it continues to trade tightly near all-time highs. The electric-vehicle maker disclosed in an SEC filing that it has bought $1.5 billion worth of Bitcoin. Tesla said it plans to start accepting Bitcoin for payment soon. The price of Bitcoin was around $42,626, after earlier spiking to a record high near $44,000 on the news.
Tesla is nearly 90% extended from a 466 buy point of a cup with handle. The EV giant is an IBD Leaderboard stock.
Inside The 50
The Innovator IBD 50 ETF (FFTY) rallied 1.6% to a record high, thanks to big gains from 1-800-Flowers (FLWS), 360 DigiTech (QFIN) and Nvidia (NVDA).
1-800-Flowers soared 6% in twice normal trade to climb back above a 32.88 buy point.
Digital Turbine (APPS), also in the IBD 50, added nearly 2% to a new high. It’s showing action after a 54% surge last week. The stock has clearly broken an upper channel line on a weekly chart. This break of the upper channel is one sign of climactic price action.
Software, solar, and oil and gas stocks led the upside among IBD’s 197 industry groups. But toy makers, casino operators and restaurant stocks lagged.
Follow Nancy Gondo on Twitter at @IBD_NGondo
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